The European Investment Bank (EIB) has launched a record-breaking €8.4 billion support program for European agriculture, targeting modernization, sustainability, and climate resilience. Announced on Tuesday, the package represents the largest-ever agricultural funding initiative by the EIB.
The funding includes €3 billion directly from the EIB, with an additional €3 billion from intermediary financial institutions, and the remainder coming from co-financing by beneficiaries, such as EU grants. Designed to address critical challenges in the agricultural sector, the program will support small and medium-sized enterprises (SMEs), individual farmers, and cooperatives across EU countries.
The initiative emphasizes projects that enhance environmental protection, improve land quality, and increase energy efficiency. It also prioritizes young farmers, women in agriculture, and SMEs. Funds can be used for a wide range of initiatives, including carbon sequestration, digital innovations, irrigation upgrades, and renewable energy installations.
EIB Vice-President Prof. Teresa Czerwińska highlighted the importance of this support, noting that it addresses a significant gap in long-term agricultural financing. "The funds aim to accelerate the sustainable transformation of the sector, ensuring its resilience and alignment with the EU's climate goals," she said.
Agriculture remains disproportionately exposed to climate change while playing a critical role in reducing greenhouse gas emissions. Despite its significance, the sector faces a €62 billion gap in long-term financing, which this initiative aims to address.
The program also integrates the goals of the European Green Deal, a comprehensive package aimed at driving ecological transformation across multiple sectors. Farmers have expressed concerns about its implementation, citing communication issues and a lack of adequate consultation during its creation.
Despite initial resistance, agricultural economists see the Green Deal as essential for long-term sustainability and profitability. "The Green Deal is both necessary and beneficial, but its rollout has faced criticism due to poor communication," said Bartosz Urbaniak, head of agro banking at BNP Paribas.
With agriculture and the bioeconomy accounting for 5% of EU GDP and employing 17 million people, the EIB’s package is expected to provide a significant boost to the sector. The funds aim not only to enhance resilience but also to ensure that European agriculture remains competitive in a changing global landscape.
